Do I report cash tips that are not on my T4?
Tips and Gratuities: What to Report. Canadian tax guidance, practical records to gather and questions to resolve before preparing your return with Arsen Accounting.
Request a quote →Arsen Accounting Services · Prepared October 29, 2026
Employees and commission earners: 10 tax questions · Browse the 100-article collection
The direct answer
Yes. Employment tips are income even when a customer pays them directly and the employer does not include them on a T4. Controlled tips, direct tips and Quebec declared tips have different CPP/EI treatment. The absence of a slip does not make the income tax-free. Keep enough detail to reconcile the amount rather than relying on a year-end guess.
Reconcile tips with employer records
Keep a record of cash tips, card tips and amounts distributed through a workplace pool. Ask the employer what is already included on the T4 and how the workplace handles tips. The tax return should report the relevant income without adding the same amount twice. A payment being small or received in cash does not make it disappear from the review.
Keep a workable daily record
A short daily log is more useful than reconstructing a year from memory. Record gross tips and any amounts passed on through a documented sharing arrangement. Preserve employer summaries and explain differences. If you changed jobs, prepare separate schedules so the preparer can match the relevant slips and identify which information is still missing.
What to gather before the review
- Tip logs and employer summaries
- T4 slips for every workplace
- Details of tip pools and amounts already reported
Are cash tips outside the tax return?
No. Cash payment does not by itself remove reporting obligations. Reconcile the tips with amounts already on slips and provide the additional information needed to report the income correctly.
Your next step
Summarize tips by month and identify which amounts your employer already reported.
Related reading
Official sources
Tips and Gratuities · Line 10100 – Employment income
Sources checked for this collection on October 28–29, 2026. Annual forms may refer to a specific tax year. Use the rules and limits for the year being filed. General information; eligibility, elections and deadlines depend on the facts. No deduction or tax saving is guaranteed.
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